Reaching your 60s with little to nothing saved for retirement can feel overwhelming, but the good news is that it’s never too late to start. Here are 12 specific recommendations that can help you make the most of the time you have, no matter your current situation.
1. Know That You Are Not Alone
Many people find themselves nearing retirement age without significant savings. Life happens—between family responsibilities, bills, and everyday expenses, saving for retirement may not have been a top priority. But remember, you’re not alone, and there are ways to turn things around.
2. Take Inventory of Your Situation
Identify your current assets, income, expenses, and possible sources of support. Determine your timeline: how many years do you have until you’d like to retire? Ten or even five years of focused, strategic planning can make a big difference.
3. Know Your Numbers
Understanding your finances is crucial. Calculate your income, list all expenses, and establish a realistic budget. A budget doesn’t restrict you; it empowers you by showing exactly where your money goes.
4. Complete a 30-Day Spending Audit
Track all your expenses for 30 days. Every coffee, lunch, or small purchase should be documented. By the end of the month, you’ll have a clear picture of where you can cut back or redirect funds toward your retirement savings.
5. Keep More of Your Money
Once you understand your income and expenses, look for opportunities to keep more of your own money. Consider ways to increase savings by reducing discretionary expenses. Picture what you could save if you were able to put away just a bit more each month—it adds up faster than you’d expect.
6. Get Creative and Think Outside the Box
Sometimes, creativity can open new paths for financial freedom. If you have a large home, renting out a portion or moving in with family could significantly reduce costs. Or consider taking on part-time work or providing live-in care for reduced rent. These small adjustments could free up funds to go toward your retirement savings.
7. Consider Working Longer
Working past the traditional retirement age may give you additional years to build savings and delay tapping into Social Security, which increases your future benefit. If you’re burnt out in your current role, consider switching to a new job that’s less stressful, or start a side hustle doing something you enjoy.
8. Delay Starting Social Security
Delaying Social Security until your full retirement age (or even later) can increase the monthly benefit you receive. Working a few more years with Social Security’s delayed retirement credits can lead to significantly higher payouts.
9. Focus on Your Health
Taking care of your physical and mental health will keep you fit and energized for longer, potentially allowing you to work additional years if needed. Health-related expenses are also major retirement costs, so investing in a healthy lifestyle now can lead to substantial savings down the road.
10. Have Faith
Believe in yourself, in your ability to overcome challenges, and in a future where things improve. Staying optimistic and proactive will keep you motivated to make necessary changes. A quote from Ella Wheeler Wilcox perfectly captures this mindset: “There is no chance, no destiny, no fate, that can circumvent or hinder or control the firm resolve of a determined soul.”
11. Keep Learning
Continual learning is vital, especially regarding personal finance and investing. Educate yourself on retirement savings strategies, tax-saving techniques, and smart investment options. Recommended reads include The Richest Man in Babylon and Think and Grow Rich, which can help inspire and guide you toward financial independence.
12. Consider a Home Equity Conversion Mortgage (HECM)
A Home Equity Conversion Mortgage, a type of reverse mortgage, allows homeowners aged 62 and older with significant home equity to stop mortgage payments or even create a tax-free income stream. This can be a useful strategy for freeing up monthly cash flow and preserving savings for retirement expenses. Consulting with a financial advisor can help determine if this option is a fit for you.
By focusing on these strategies, you can build a more secure retirement, even with a late start. Each change, however small, will help you feel more in control of your future, and each step taken today will contribute to a more comfortable tomorrow.
